7 ITR Forms for FY 2024-25 – Simplified Guide

Every year assessees filing Income Tax Returns in India face confusions regarding determination of the appropriate ITR forms for them. With different ITR forms designed for individuals, HUFs, companies, and other taxpayers, knowing which one applies to you is essential for hassle-free filing. But it’s not just about your taxpayer category—factors like income sources, residential status, and financial transactions also play a key role in form selection. In this guide, we will break down all 7 ITR forms for the financial year 2024-25 and help you identify which one is right for your specific situation.

Categorization of ITR Forms

The ITR forms are broadly categorized on the basis of the following –

• Type of assessee – Individuals, HUF, Companies, firms, LLPs, AOPs, BOIs, etc.
• Residential status of the assessee – Resident, Not ordinarily resident, Non-Residents,
• Quantum of total income – Upto Rs. 50 lacs, Above Rs. 50 lacs
• Heads of Income – Salary, Profession or Business, House Property, Other Sources, Capital gains.

ITR Forms – ITR 1 – Sahaj

ITR 1 (Sahaj) is the ITR form that is applicable to Resident Individuals having a total income less than or equal to Rs. 50 lacs. However, out of all these 7 ITR forms, this form is applicable only if the total income of the resident individual is from the following sources i.e. heads of income –

• Income from salary,
• Income from ONE house property,
• Income from other sources,
• Agricultural income upto Rs. 5,000,
• A new update in this ITR form now allows taxpayers to report long-term capital gains (LTCG) of up to Rs. 1.25 lacs under ITR 1. Previously, such gains had to be declared using ITR 2.

Who is Not Eligible to File ITR 1?

It is pertinent to remember that ITR 1 cannot be used by every resident individual. Any resident individual whose total income includes any one of the below mentioned incomes is not eligible for filing ITR 1 –

• Total Income exceeds Rs. 50 lacs,
• Agricultural income exceeds Rs. 5,000,
• Income from more than 1 house property,
• Winnings from race horses, lottery, gambling etc.,
• Income from LTCG exceeds Rs. 1.25 lacs,
• Income from STCG,
• Income from business or profession,
• Income from virtual digital assets.

Moreover, if the resident individual fulfils any one of the following conditions, ITR 1 will not be applicable –

• Investment in unlisted equity shares,
• Director in a company,
• TDS of the assessee has been deducted u/s 194N,
• The assessee has deferred income tax on ESOP received from employer being an eligible start-up,
• The assessee has any brought forward loss or has to carry forward any loss under any head of income.

Therefore, any assessee not eligible to file ITR 1 has to navigate through the list of the other ITR forms to file his return.

ITR 2 – Who is Eligible?

Next in the list of ITR forms, let us now understand the eligibility for filing returns via ITR 2. In essence, all the individuals and HUFs who were ineligible to file ITR 1 as per the exclusions listed above, can file ITR 2. Moreover, even in case of clubbing of income of spouse, minor children, the assessee can file ITR 2. Therefore, the assessees under the following categories can file ITR 2 –

• Total income exceeds Rs. 50 lacs,
• Agricultural income exceeds Rs. 5,000,
• Income from house property,
• Income from Capital Gains
• Income from foreign sources,
• Investment in unlisted equity shares,
• Director in a company,
• TDS of the assessee has been deducted u/s 194N,
• The assessee has deferred income tax on ESOP received from employer being an eligible start-up,
• The assessee has any brought forward loss or has to carry forward any loss under any head of income.
• Ownership of assets outside India,
• Signing authority in any account outside India.

Who is not eligible to file ITR 2?

Any individual or HUF having income from business or profession such as interest, salary, bonus or commission or any remuneration by any other name called from any partnership firm, cannot file ITR 2. The assessee will have to further navigate through the other ITR forms to choose the correct form.

ITR Forms – ITR 3

The ITR 3 is to be used by an individual or a HUF who is having income under the head Profits or Gains of Business or Profession and who is not eligible to file Form ITR‐1 (Sahaj), ITR‐2 or ITR‐4 (Sugam).  Therefore, assessees having the following incomes can file ITR 3 –

• Income from Business of Profession and not opting for presumptive taxation,
• Income from Business of Profession and maintaining books of accounts,
• Investment in unlisted equity shares,
• Income of Partners from a partnership firm,
• Other Incomes such as salary, pension, house property and other sources.

In essence, ITR 3 is the form that must be filed in case the individuals or HUFs are not falling under the specified categories of the following ITR forms – ITR 1, ITR 2 or ITR 4.

ITR 4 – Sugam

The ITR 4 (Sugam) is the form that can be filed by Resident Individuals, HUFs, or Partnership firms (except LLPs) falling under the following criteria –

• Total Income is upto Rs. 50 lacs,
• Income from Business of Profession and opting for presumptive taxation u/s 44AD, 44AE, 44ADA,
• Income from salary,
• Income from ONE house property,
• Agricultural income upto Rs. 5,000,
• Income from other sources (except winnings from racehorses, lottery, etc.)
• A new update in this ITR form now allows taxpayers to report long-term capital gains (LTCG) of up to Rs. 1.25 lacs.

Who is not eligible to file ITR 4?

The ITR 4 (Sugam) cannot be filed resident individuals, HUFs or partnership firms (except LLPs) if the fulfil any ONE of the following conditions –

• The assessee is a Resident but Not Ordinarily Resident (RNOR),  or Non-Resident Indian,
• Total Income exceeds Rs. 50 lacs,
• Agricultural Income exceeds Rs. 5,000,
• Income from more than 1 house property,
• Investment in unlisted equity shares,
• Director in a company,
• The assessee has deferred income tax on ESOP received from employer being an eligible start-up.
• Income from foreign sources,
• The assessee has any brought forward loss or has to carry forward any loss under any head of income.
• Ownership of assets outside India,
• Signing authority in any account outside India.

ITR 5 – Who is Eligible?

The ITR 5 Form is intended for use by the following entities:

• Firms
• Limited Liability Partnerships (LLPs)
• Associations of Persons (AOPs)
• Bodies of Individuals (BOIs)
• Artificial juridical persons as defined under section 2(31)(vii)
• Estates of deceased individuals
• Estates of insolvent individuals
• Business trusts and investment funds
• Cooperative societies
• Local authorities

However, this form should not be used by individuals or entities required to file income tax returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).

ITR Forms – ITR 6 – For Companies

The ITR 6 form is applicable to companies that are not claiming exemption under section 11 of the Income Tax Act. This means companies that do not derive income from property held for charitable or religious purposes can use this form to file their income tax return.

Therefore, the companies claiming exemption under section 11 (i.e., those whose income is from property held for charitable or religious purposes) are not eligible to file ITR 6. The assessee will have to navigate through the other ITR forms for the same.

ITR Forms – ITR 7

The ITR 7 is meant for persons, including companies, required to file returns under the following sections of the Income Tax Act: 139(4A), 139(4B), 139(4C), and 139(4D). This typically includes trusts, political parties, research associations, news agencies, universities, colleges, and other institutions claiming exemption.

Stay tuned to understand more about each of these ITR forms.